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YOUR AUTO INSURANCE DOES
NOT COVER EVERYTHING
In the event your vehicle is deemed
a total loss due to an accident or theft, your auto insurance
policy will usually cover only the actual cash value or market
value of your vehicle less a deductible. This settlement could
be significantly less than the amount you owe to your lender
or leasing company. The final result is a financial GAP where
you must make up the difference, which could mean thousands
of dollars out of your pocket.
PROTECTION THROUGH GUARANTEED
AUTO PROTECTION PLUS
Guaranteed Auto Protection Plus Protects individuals
who finance a new or used vehicle
from the financial GAP.
| Guaranteed
Auto Protection Plus is
a loan/lease deficiency waiver and is not offered as insurance
coverage. |
In the current market, during the
first few years that you own your vehicle, your loan/lease balance
can be higher than the actual value of your vehicle,
as a result of depreciation. As
your vehicle's value declines, your loan/lease balance may decline
more slowly, resulting in a financial gap. If your vehicle were
stolen or totaled in an accident, you would be liable to pay
the difference between your insurance settlement and your outstanding
loan/lease balance.
| The
purchase of Guaranteed
Auto Protection Plus is
voluntary and cannot be required as a condition of credit
approval. |
Guaranteed Auto Protection
Plus covers the difference
between the actual cash
value of your vehicle and
the loan/lease balance, less delinquent payments, late charges,
refundable service warranty contracts and other insurance-related
charges.
Guaranteed Auto Protection Plus will even cover
your auto insurance deductible of $500 or $1,000.
The actual amount depends on your credit union's program limits.
Ask your lender/loan officer for details.
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